Kayo, the online streaming service provided by Hubbl, has come under fire for displaying gambling advertisements outside the times allocated for such content during live sports events. This controversy emerged after the Australian Communications and Media Authority (ACMA) received numerous complaints from viewers, prompting an investigation into the company’s practices.
Under current regulations, online content providers are permitted to show gambling advertisements only during live sports events and specifically between the hours of 5 am and 8:30 pm. Moreover, these ads must not be shown within five minutes before the start or after the end of an event. ACMA’s investigation revealed a significant breach of these rules by Kayo. The findings included 16 different instances of gambling ads being shown outside the prescribed time slots, affecting a total of 267 live sports events.
In its response, Hubbl attributed the breach to a system error that impacted users who accessed Kayo through iOS applications. This malfunction occurred over a six-week period between February and March 2023. Although Hubbl acknowledged the error, this explanation did little to mitigate the gravity of the situation.
Following the detailed investigation, ACMA ruled decisively on the matter. The authority directed Hubbl to arrange for an external audit of its technical systems and processes. This audit is expected to focus on identifying and rectifying the flaws that led to the breach and to ensure that measures are in place to prevent a recurrence in the future.
There are significant repercussions should Hubbl fail to comply with ACMA’s directives. The company could face daily penalties amounting to AU$626,000 (£328,766/€388,572/US$417,159). The enforcement of these penalties will be at the discretion of the Australian Federal Court, underscoring the severe financial risk for Hubbl if the issue is not rectified expeditiously and effectively.
Carolyn Lidgerwood, a member of the ACMA authority, expressed strong disapproval regarding the breach.
. She highlighted the alarming scale of the error and Hubbl’s failure to detect and address the system bug that enabled the widespread dissemination of gambling ads outside allowed times. “Online streaming services and broadcasters alike have a responsibility to implement robust systems that ensure adherence to long-standing gambling advertising rules,” Lidgerwood stated.
She went on to emphasize the purpose of these regulations, noting that they exist to minimize viewer exposure to gambling advertisements, particularly for young and impressionable audiences, as well as those vulnerable to gambling-related harms. “In this case, Hubbl has let those viewers down,” she concluded.
ACMA’s primary regulatory focus remains on gambling operators and their activities. In a related development, the authority recently took action against three offshore gambling websites—A Big Candy, Jackpoty, and John Vegas Casino—ruling that they were operating in breach of the Interactive Gambling Act 2001. These websites were engaged in offering various online casino games without the necessary licenses, leading ACMA to request their blocking.
So far this year, ACMA has made 31 requests to block websites deemed to be running illegal online gambling operations. This proactive stance underscores the authority’s commitment to regulating the gambling industry and protecting consumers from unlawful and potentially harmful activities.
This latest ruling against Kayo serves as a powerful reminder of the stringent advertising rules in place and the severe consequences for breaches. The case not only casts a spotlight on the importance of maintaining compliance with advertising regulations but also sets a precedent for other online platforms and broadcasters.
Hubbl, now under the microscope, must undertake significant steps to restore compliance and resolve the issues within their systems. The outcome of ACMA’s ruling will likely influence the operational practices of other digital content providers, thereby ensuring a more stringent adherence to gambling advertising guidelines across the board.
In summarizing the case, ACMA’s enforcement actions signal a broader commitment to maintaining ethical standards in advertising and protecting vulnerable audiences from inappropriate content. The authority’s vigilance and readiness to impose penalties reflect its crucial role in safeguarding public interest in the digital age.
